# Create an Inventory Adjustment

### How to Create an Inventory Adjustment in Muhasib ERP

### Overview

This guide will help you record an approved stock increase or decrease for a documented physical difference.

Muhasib changes on-hand stock and may create valuation/general-ledger entries.

### Who can do this

You need access to Inventory Adjustment plus item, location, batch/serial, cost, and approval.

### Before you start

Complete a physical count and confirm item, unit, location, batch/serial, system quantity, actual quantity, reason, cost basis, date, and approval.

<div id="bkmrk-%F0%9F%9A%A8-importantmake-sure" style="border-left: 4px solid #dc2626; background: #fef2f2; padding: 12px 16px; margin: 15px 0; border-radius: 4px;">Before saving, check that the correct company is open and that you have permission to complete this task.</div>### Where to find it

Back Office → Items &amp; Advanced Inventory → Inventory Adjustment.

### Create an Inventory Adjustment

#### Step 1: Start a new adjustment and enter date/reference

#### Step 2: Select the item and exact stock identity

#### Step 3: Confirm system quantity

#### Step 4: Enter the approved increase/decrease or corrected quantity as the form

Enter the approved increase/decrease or corrected quantity as the form requires.

#### Step 5: Enter reason and cost/account details where available

#### Step 6: Review direction and resulting quantity

#### Step 7: Save once

### Check your work

Compare and Confirm adjustment document, stock ledger, item/location/batch/serial balance, valuation, and general ledger.

<div id="bkmrk-%F0%9F%92%A1-tipcheck-the-saved" style="border-left: 4px solid #2563eb; background: #eff6ff; padding: 12px 16px; margin: 15px 0; border-radius: 4px;">Take a moment to check your work before closing the window. This small check can save time later.</div>### If something goes wrong

- Never use adjustment to replace a missing source transaction.
- Search for the reference before retrying.

### Related guides

- [Correct or Reverse an Inventory Adjustment](https://docs.muhasiberp.com/link/292)
- [Audit Item Inventory](https://docs.muhasiberp.com/link/333)
- [Reconcile the Stock Ledger to Physical Stock](https://docs.muhasiberp.com/link/299)

### What to do next

<div id="bkmrk-%E2%9C%85-next-actioncontinu" style="border-left: 4px solid #16a34a; background: #f0fdf4; padding: 12px 16px; margin: 15px 0; border-radius: 4px;">[**Correct or Reverse an Inventory Adjustment**](https://docs.muhasiberp.com/link/292).</div>